Correlation Between Inner Mongolia and CGN Nuclear
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By analyzing existing cross correlation between Inner Mongolia BaoTou and CGN Nuclear Technology, you can compare the effects of market volatilities on Inner Mongolia and CGN Nuclear and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Inner Mongolia with a short position of CGN Nuclear. Check out your portfolio center. Please also check ongoing floating volatility patterns of Inner Mongolia and CGN Nuclear.
Diversification Opportunities for Inner Mongolia and CGN Nuclear
0.97 | Correlation Coefficient |
Almost no diversification
The 3 months correlation between Inner and CGN is 0.97. Overlapping area represents the amount of risk that can be diversified away by holding Inner Mongolia BaoTou and CGN Nuclear Technology in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on CGN Nuclear Technology and Inner Mongolia is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Inner Mongolia BaoTou are associated (or correlated) with CGN Nuclear. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of CGN Nuclear Technology has no effect on the direction of Inner Mongolia i.e., Inner Mongolia and CGN Nuclear go up and down completely randomly.
Pair Corralation between Inner Mongolia and CGN Nuclear
Assuming the 90 days trading horizon Inner Mongolia BaoTou is expected to generate 1.33 times more return on investment than CGN Nuclear. However, Inner Mongolia is 1.33 times more volatile than CGN Nuclear Technology. It trades about 0.2 of its potential returns per unit of risk. CGN Nuclear Technology is currently generating about 0.22 per unit of risk. If you would invest 144.00 in Inner Mongolia BaoTou on August 25, 2024 and sell it today you would earn a total of 50.00 from holding Inner Mongolia BaoTou or generate 34.72% return on investment over 90 days.
| Time Period | 3 Months [change] |
| Direction | Moves Together |
| Strength | Very Strong |
| Accuracy | 100.0% |
| Values | Daily Returns |
Inner Mongolia BaoTou vs. CGN Nuclear Technology
Performance |
| Timeline |
| Inner Mongolia BaoTou |
| CGN Nuclear Technology |
Inner Mongolia and CGN Nuclear Volatility Contrast
Predicted Return Density |
| Returns |
Pair Trading with Inner Mongolia and CGN Nuclear
The main advantage of trading using opposite Inner Mongolia and CGN Nuclear positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Inner Mongolia position performs unexpectedly, CGN Nuclear can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in CGN Nuclear will offset losses from the drop in CGN Nuclear's long position.| Inner Mongolia vs. Focus Media Information | Inner Mongolia vs. Qilu Bank Co | Inner Mongolia vs. Dalian Zeus Entertainment | Inner Mongolia vs. Jiangsu Financial Leasing |
| CGN Nuclear vs. Zijin Mining Group | CGN Nuclear vs. Wanhua Chemical Group | CGN Nuclear vs. Baoshan Iron Steel | CGN Nuclear vs. Shandong Gold Mining |
Check out your portfolio center.Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Money Flow Index module to determine momentum by analyzing Money Flow Index and other technical indicators.
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